Circuit Breaker (Tax Cap) Impacts for 2015 in Monroe County

16 Apr

The Indiana Department of Local Government Finance just released the report on circuit breaker impacts on local units of government for 2015. The report for Monroe County specifically can be found here.

The circuit breakers — also referred to as “tax caps” — refer to various statutory (and constitutional) limitations on the property tax responsibility of individual property taxpayers in Indiana. There are two types of circuit breakers: the 1%-2%-3% circuit breakers (which limit property tax liability to a certain percentage of assessed value) and the Over 65 circuit breakers (which limit property tax increases to lower-income seniors). I wrote about the circuit breakers for 2014 in more detail here and here.

As you can see in several of the charts below, 2015 saw a slight increase in the circuit breakers from 2014, compared to a substantial increase from 2013 to 2014. This is very welcome news to local units of government, many of whom were very concerned after the large increase in 2014.

The following table shows the amount of circuit breaker credits by circuit breaker type, by year, from 2010-2015.

Screenshot 2015-04-16 21.14.36

The following chart illustrates the same data graphically:

Screenshot 2015-04-16 21.26.35

One can easily make the following quick observations from these two charts:

  • Almost all of the increase in circuit breakers since 2011 come from the 1% (owner-occupied residences). This is not surprising, as Indiana’s property tax system is generally considered very favorable to homeowners (vs. other classes of property owners, such as businesses)
  • This means that our assessed values in Monroe County kept pace with property taxes
  • The circuit breakers for 2% (non-owner-occupied residential, agricultural, and long-term care facilities properties) and over 65 have been very stable over time (other than a dip in the 2% circuit breaker in 2013)
  • 2015 is the first year that Monroe County has seen any circuit breaker credits for 3% (commercial and industrial) properties — for a whopping total of $9
  • The overall increase in circuit breaker from 2014-2015 was very small, which will work to the benefit of local units of government (though not as good as a decrease, obviously!)

The following chart breaks down the impact of the 2015 circuit breakers by taxing unit.

Screenshot 2015-04-16 20.52.27

As this chart shows, only 3 units, Monroe County, City of Bloomington, and MCCSC saw circuit breaker increases of more than $10K. The Town of Ellettsville actually saw a $6702 decrease in its circuit breaker from 2014.

Summary of 2014-2015 Circuit Breaker Changes

  • County-Wide
    • Increase from $819,507 to $865,759
  • Monroe County Government
    • Increase from $153,018 to $164,157
  • County General
    • Increase from $111,920 to $120,905
  • Summary
    • Still an increase from 2014-2015 – but a very small increase\
    • Increased much less in 2015 than in 2014
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One Response to “Circuit Breaker (Tax Cap) Impacts for 2015 in Monroe County”

  1. Marty Hawk April 17, 2015 at 7:38 am #

    The Monroe County Community School has over $6 billion dollars in assessed value and lost $172,578, RBBSC has under $800 million, and lost $127,670. This is because the RBBSC has a larger percentage of homesteads versus commercial is the non captured assessed values used. So percentage wise RBBSC had a much larger loss of their levy than did MCCSC.

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